Former President Donald Trump has approved Nvidia to sell its H200 AI chips to 'approved customers' in China, a move he claims will bolster American jobs and manufacturing, despite strong objections from some Democratic senators concerned about national security implications.
Former President Donald Trump announced Monday his approval for Nvidia to sell its H200 computer chips, used in artificial intelligence development, to 'approved customers' in China. This decision comes amid a balancing act between concerns that advanced chips could boost China's AI capabilities against the U.S. and the desire to grow the American AI ecosystem through companies like Nvidia. The H200 is not Nvidia's most advanced chip, with superior models like Blackwell and Rubin remaining restricted. Trump stated on social media that China's leader Xi Jinping responded positively to the decision, which he believes will support American jobs, manufacturing, and taxpayers. Nvidia praised the move, asserting it would support domestic manufacturing and that Commerce Department vetting would balance economic and national security. However, a group of Democratic senators, including Chris Coons and Elizabeth Warren, strongly objected, warning that access to these chips could provide China's military with 'transformational technology' for more lethal weapons, effective cyberattacks, and a stronger economic sector. They highlighted how Chinese AI companies struggle without advanced American chips. Trump also indicated that the Commerce Department is finalizing details for other chipmakers like AMD and Intel to sell technologies abroad. The approval reflects the influence of Nvidia CEO Jensen Huang and contrasts with the Biden administration's prior efforts to limit such exports due to national security risks. Nvidia's stock saw a slight rise after the announcement.
